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Technology Stocks : CyberCash a buy? -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (3204)	4/4/1999 8:17:00 PM
From: Big Dog	Respond to of 3990

For those of you who are losing patience, here is an example of how undervalued CyberCash is. Currently, CYCH has a market capitalization of $215.2 million. Another stock that I keep tabs on (CUST) has a market capitalization of $272.9 million. Why? Because Herb Greenberg of CNBC and TheStreet.Com reported the following on March 19th and the momentum has continued: "CustomTracks update: An item here several months ago mentioned CustomTracks (CUST:Nasdaq), the brainchild of David Cook, who founded Blockbuster Video. (Actually, his claim to fame is that he created the software that keeps track of video rentals at Blockbuster, and years earlier designed the system used as the blueprint for electronic toll systems.) This was the guy who when contacted by this column several months ago went out of his way not to give details about what he was doing. (He reluctantly gave me an interview because he had the bad fortune of picking up the phone while his secretary was out.) At the time the company had been vaguely talking about a system that would allow consumers to customize CDs off the Internet. Turns out, as the company disclosed last month, it couldn't get the content rights, so the idea was dropped. The stock, which had been at 11, slipped within a month as low as 8. During that time Cook bought 25,000 shares to boost his stake to 12.9% and director Antonio Sanchez Jr. added 237,000 shares, increasing his stake to 10.4%. Were they promotional purchases, or a true belief that their stock was a bargain? Hard to say. Cook, through his secretary, wouldn't comment, and Sanchez couldn't be reached. However, the company has resorted to Plan B, which it says was a "byproduct" of the CD technology -- an Internet transaction payment system, not unlike the fast-pass system Cook designed for toll roads, that should be operational by the third quarter of this year. Again, Cook won't discuss the system. The company recently hired Lante Corp., an e-commerce consulting firm whose advisory board includes Michael Dell and former Microsoft (MSFT:Nasdaq) CFO Michael Maples, to help develop the system. Will it ever really work? Joe Barton of White Rock Capital in Dallas, whose firm as of its most recent SEC filing owns 6.9% of CustomTracks, says he's a believer. "The company is trading for less than 2 times cash and the bet is on a proven visionary with a history of being very innovative," he says. "We have great management and a low multiple to cash for a venture deal with David Cook, who is going after an enormous market." The trick, of course, is getting from here to there." It won't take much, but when someone takes the CYCH story and shares it broadly: Watch out!

To: Big Dog who wrote (3204)	4/5/1999 4:51:00 PM
From: Walt Corey	Read Replies (1) \| Respond to of 3990

Still waters run deep? Not in this case. Someone has to evangelize the product, Melton knows this. Literallly every man, woman and child has received atleast one CD or floopy from AOL over the last 6 years. It is now a household name. New technology that no one talks about is soon to be old technology. Someone will one up them AND tell the world. These people have got to get off the dime, either that or actively seek a suitor. If someone offer $26/shr for mine...I'd sell, wouldn't you all? I agree with others, CYCH's window of opportunity is rapidly closing. I agree, this summer will tell all. WC